Ether (ETH) price has struggled to build momentum since early 2024. Is Ether really a contrarian bet for 2024, or can it still generate a rally?
Ethereum is a “contrarian bet” through Q4
According to Matt Hougan, chief investment officer (CIO) of Bitwise Asset Management, Ethereum could be the underdog heading into 2025.
Hougan noted that Ether has struggled, especially after ETH hit a more than 42-month low against Bitcoin (BTC) on September 16.
While he remains bullish on Ether, he also believes that price action will likely remain sluggish for the rest of the year. Hougan wrote in a September 17 blog post:
“From where I stand, none of Ethereum’s challenges seem existential, and its opportunities are overwhelming. I suspect the market may re-evaluate Ethereum as we get closer to the November elections and any regulatory clarity that may emerge. For now, it looks like a potential contrarian bet through year-end.”
Furthermore, Hougan said that Ether’s biggest rival, Solana (SOL), is up 38% YTD (YTD), while Ether remains flat. However, Solana price has also struggled against Bitcoin, with some analysts believing it will follow Ether’s downward trend.
ETH Price Trending Further Down Before 2025?
According to anonymous crypto trader GGG, Ether could continue to decline in the short term. GGG wrote in a post on X on September 19:
“I think we are in a similar position on $ETH as the box on the left. A bear market rally followed by a deep decline is my current prediction.”
ETH/USDP, 1-week chart. Source: GGG
Additionally, the launch of the first Ethereum ETFs in July had little positive impact, with negative net flows and ETH prices down nearly 30% since then.
But if ETH price drops further, the next correction could form a triple Dip chart, leading to the next Ether price rally in Q4 2024, prominent analyst Crypto Bullet stated in a post on X on September 17:
“ETH 2021 vs ETH 2024. Same triple Dip chart? Looks pretty similar so far.”
Ether triple Dip chart, 2021 vs 2024. Source: Crypto Bullet
On the 3-day chart, Ether price is retesting the 700-day accumulation range, which is Vai as important support around the $2,200 level, writes crypto trader Inmortal, in a post on X on September 17:
ETH/ USDT, 3-day chart. Source: Inmortal
For further upside momentum, Ether price needs to stay above this important long-term support level.
According to data from CoinGlass, a potential drop in Ether below $2,200 would trigger over $1 billion in leveraged short liquidations across all exchanges.
ETH transaction liquidation map. Source: CoinGlass
Ether prices could also see further growth as Bitcoin enters the parabolic phase of its bull cycle. Based on historical chart patterns and Bitcoin’s Medium monthly returns in the fourth quarter of the year, some analysts predict a three-month Bitcoin rally to $92,000, possibly starting in October.
This article does not contain investment advice or recommendations. All investment and trading decisions involve risk, and readers should conduct their own research when making a decision.
